Crypto Currency and Start up’s- The Deadly Combination
As the mainstream currency flows in the global economy, many options come for the startup is that have found the cryptocurrency world to be a haven for all their fundraising strategy. The ICO has been a popular form of raising the required working capital, without having to go through the complex channel finance from traditional banks. The underlying business models that are designed by the new enterprises are highly dependent on this mode of financing to expand their product and service base including selling their own coins, tokens.
The Game Changer-ICO
- the ICO is the most successful way of raising funds by startup’s and small and medium enterprises that is a simple and easy way to raise the required capital without any underlying assets or any model to raise the funding requirements
- the technology adopted is independent, just like an internet protocol, without having any tags attached, or a highly complicated model
- based on the whitepaper the basic business plan the whitepaper has the details about the project to be funded, this source has raised millions of funding in cryptocurrency for more than 93 % of the startup projects
- the speculation about the project funded has off late seen a decline in the number of a white paper released, as the regulations are strict in this mode of raising funds
- privately distributed platforms have mushroomed to cope up with the funding requirements, and are slowly refraining from ICO to investors with high-risk profiles, to fund their projects with a nondilutive substantial amount of capital, instead can go for a Series A to B ICO
- a well researched token system is replacing the methodology to raise money for your captive requirements, as most of them are using this route to increase their token sales, there should be clarity about the token sale and ICO issuance for captive funds
- the credibility, growth and more importantly the legitimate asset class is better for adopting the cryptocurrency to fuel their investments and create an industry that is driven with a focus on the core project and not ways to exhibit personal finances
The entire ecosystem of a startup who are dependent on the crypto way of financing has ensured a more professional outlook, to keep a keen watch on issuing security based upon the underlying intention of the company to be financed and have stricter regulations in place.